Football market and economics
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Major Football Brands are in Europe
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The European football market grew to €15.7 billion in 2008/09
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Top 5 leagues represent over 50% of total (€7.9 billion)
Revenue mix in the Top 5 Leagues
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Matchday
revenue
23 %
Commercial
revenue
31 %
Broadcasting rights Broadcasting rights are the main source of revenue for the ‘big five’ leagues (3,7 billion in 2008/2009)
Matchday revenue increased by €39 million (2%) to €1,8 billion in 2008/09 across the TOP 5 leagues
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Commercial revenue increased by €117 million (5%) to €2,44 billion in 2008/2009
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Average league attendances increased in three of the Top 5 leagues in 2009/10
(Bundesliga, La Liga and Serie A), with the
4% fall in the English Premier League and in Ligue 1
46 %
Source: ICM Research
Revenue performance of Top 20 clubs
Source: ICM Research on DELOITTE Data
Business model evolution
Yesterday …
…Today
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Matchday is a primary revenue source
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Revenues depending on the performance on the pitch
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Sponsorship deals are not too structured
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TV rights are a key contributors to total broadcasting revenues
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Stadium as Real Estate asset and entertainment venue
Marketing strategies build revenues outside the season and on non-match days
Football players have a fundamental role because they are brands in themselves
Tv is not the only interesting media but also social network and mobile connection marketing startegy
Club chooses their sponsors selectively and deals are very structured Converting fans into customers
Create a model that is still delivering revenue even if the team isn’t doing so well
Source: ICM Research
The strategic assets of football clubs
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Brand
Define a brand strategy and rethink the business model is the first step in exploiting process of brand potential •